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New tech trends pop up constantly, but in my mind, artificial intelligence (AI) is the largest tech paradigm shift since the iPhone. And much like we carry our comfort devices with us 24/7, AI might become an inseparable part of our lives much sooner than you think.
Already, the AI market’s worth billions of dollars, fast-tracking its way to nearly $2 trillion in the next decade. More online users are raving, wondering or worrying about the implications of AI every day. Even in the few years we’ve seen this technology in action, AI’s already caused massive changes, especially for entrepreneurs.
In 2022, over a third of companies used AI to automate business processes — and more than half of them reported better cost savings, product performance and customer experience.
Some founders incorporated AI by using software like ChatGPT to generate ideas for copy. Others relied on AI chatbots to handle customer service queries. AI helps millions of businesses aggregate data, automate processes, write code and more.
Soon, your competitors might adopt AI (if they haven’t already). And if you’re still on the sidelines debating whether or not to embrace the technology, you could fall behind.
Entering the AI market now gives you more time to experiment and learn how to use the technology to your advantage. But how can you adopt AI if you’re not a coder or don’t know where to start?
As I’ve told other founders looking to explore a new industry, try acquiring an existing business first. Since January, Acquire.com’s marketplace has flooded with over 500 listings for standalone AI products or companies.
You don’t have to build a chatbot from scratch or automate your processes with a large dev team. AI can cover those bases while you learn about the technology by maintaining it first.
Not sure where to start? Here are a few ways to think about incorporating AI into your business.
Related: How to Use AI and Automation to Boost Your Business Goals
Why your business needs AI sooner than later
I remember when the first mobile apps launched in the late 2000s, and everyone rushed to download the Flashlight and Remote apps. Today, every smartphone includes an LED flashlight and a built-in control center to manage other devices. Demand drove development.
AI will likely follow the same path. What started as use cases and one-off products will become integrated into our daily workflows as people discover (and come to rely on) the benefits. Expect huge cost and efficiency savings across operations, marketing, legal and more.
Just like the iPhone, it’s a matter of when not if. We’re reminded every time a new smartphone comes out why the technology is invaluable to us and why it’s better than what came before. Even if some AI use cases seem rudimentary and unnecessary now, as more businesses adopt it, developers will iterate better versions that provide even more efficiency.
And it won’t just be your existing competitors that adopt AI for their benefit. New founders and bootstrappers will use the technology to grow and exit businesses faster.
The biggest drain on the bootstrapper’s bank account is hiring employees to help them scale. But if AI can help small, bootstrapping teams automate, they can then extend their runway without raising funds and giving up equity.
And where will that leave you?
I understand how nerve-wracking it can be to incorporate new, unfamiliar technology into your business. But your introduction to AI needn’t involve hiring expensive AI specialists or becoming one yourself. Instead, acquire an AI project and learn about it as you grow.
Related: We Will Inevitably Lose Skills to AI, But Do The Benefits Outweigh The Risks?
How M&A can help you adopt AI into your business
Before scouring marketplaces to find the perfect AI tool, assess your business’s needs. Where could AI streamline processes? How can it add value for your employees or customers? Once you’ve identified how you want AI to help your business, start browsing for matches on acquisition marketplaces like my company, Acquire.com.
Say you find the perfect match, make an offer and close with a seller. Before negotiations end, ask the seller how they keep the tech running. Will you need to update the code, input new data sets, or do other technical tasks? Shadow them or ask them to provide support and training for a period after your acquisition closes.
Maintaining an AI program might not be as arduous as building one from scratch, but it still takes work. Before acquiring one, ensure the founder has made you comfortable with how the technology works. Even if you hire someone else to run the technology, learning the general concepts can empower you with the confidence to exploit it.
This is your chance to play around with the technology, familiarizing yourself with how AI interprets data and produces results. Especially if you acquire a smaller, one-purpose tool or business, practice inputting information and observing the outcomes.
At Acquire.com, for example, we’re already investigating ways AI can improve our customer experience. One of our first experiments is an AI-powered M&A assistant that answers customer questions using our vast resource library. It’s still in beta at the moment, but we look forward to testing it soon.
Related: This Is the New ChatGPT Trend That Will Enhance Your Business
Looking to exit? Here’s how AI might affect M&A
Exiting might not be top of mind when you acquire an AI business — but it should be. Consider how much value an AI tool will add to your business if you decide to exit in two, five or 10 years. Acquiring AI now can equip you with valuable knowledge when the market matures.
Businesses without that knowledge might struggle to sell. Some buyers might not even consider acquiring businesses without an AI asset or tech stack. As a result, integrating AI into your business now gives you a competitive edge that could be worth a lot of money in the future.
It’s okay to feel intimidated or overwhelmed by all the (good and bad) possibilities that AI offers. But with so many businesses finding success with the technology, now’s the time to play around with it until you discover how it can benefit your business.
Related: 4 Simple Ways To Leverage AI Skills For Passive Income From Home
This article is from Entrepreneur.com
